Economic licensing of Heathrow Airport

This page contains the economic licence for Heathrow Airport, details of modifications to the licence and documents related to our licensing of the airport.

Economic licensing of Heathrow Airport

We have powers under the Civil Aviation Act 2012 for the economic regulation of airport operators that pass the market power test in the Act. In February 2014 we granted a licence to Heathrow Airport Limited (HAL). The licence includes a price control on airport charges for the period 1 April 2014 to 31 December 2018.

The licence, an operator determination, our notice granting the licence and supporting documentation, and documents relating to our licensing of HAL are below:

More information on the market power assessment and the initial licence conditions (including the price control condition) are on the market power assessment and price control pages accordingly.

Modifications to the licence

Licence conditions can be modified in two ways:

  • using a statutory process to modify set out in the Civil Aviation Act 2012
  • using a self-modification process in which HAL and its airline community can modify certain specified parts of the service quality statement of standards and rebates in Schedule 1 of the licence

Details of modifications are shown on our public register:

Proposed modification under section 22 of the Civil Aviation Act 2012 - for calculation of inflation adjustment to development capex:

Operational resilience at Heathrow and Gatwick airports

HAL is obliged to produce an operational resilience plan under its licence. Documents relating to this requirement are below:

Regulatory accounting guidelines

HAL is required to produce regulatory accounts under its licence. The regulatory accounts have to be produced in conformity with regulatory accounting guidelines published by us. The latest guidelines are below:

Heathrow Q6 trigger definition sheets

HAL's licence contains triggers on the completion of capital projects. Documents relating to the triggers are below:

Service quality at Heathrow

HAL pays rebates to airlines if its service quality does not reach specific standards. It also receives bonuses for out-performance. Details of its performance against the standards is on its website. Documents relating to service quality at Heathrow in recent years are below: